leverage

Liquidity, lending, and leverage: Serbia’s credit cycle evolves

Serbia is experiencing a notable transformation in its economic landscape, primarily driven by changes within its financial system. This shift is characterized by increasing liquidity, an uptick in lending activities, and a gradual reintroduction of leverage after a period of monetary restraint. These developments are reshaping the credit cycle, which plays a crucial role in determining the overall growth trajectory of the nation. The current phase is not classified as a credit boom; however, indicators suggest that balance sheets are…